From The New York Times:
In recent months, as the stock market has virtually spun off its axis, most people—the reasonable ones—have fled for their economic lives. But like a big-wave rider or a tornado chaser, Peter Milman dives in and out of the market’s sickening maw, riding the explosions of panic and greed and trying to snatch victory—profits—from the jaws of worldwide financial defeat. As a day trader who follows every tick of the Dow, he has a visceral view of the most manic-depressive stock market in recent history.
It is precisely the terrifying volatility—the VIX, the ticker symbol for the Chicago Board Options Exchange Volatility Index, has reached its highest recorded levels in recent months—that has made day traders suddenly hot again after years in the wilderness following the dot-com bust of 2000. (In fact, they don’t call themselves “day traders” anymore, preferring the term “active,” or “professional,” traders.) Downswings of hundreds of points on the Dow followed by equally large reversals offer great opportunities for the short-term investor. One need only jump in and chase a stock or an index for a few points: Buy in, sell off, repeat. Traders try to make money on the upswings and the downswings, in the latter case by short-selling—temporarily covering a long position for another party on the bet that his stock will go down. But Milman prefers to hitch a ride on the rebounds, the style of trading he learned during the bull market.
More here. (Note: Thanks to Dr. S.T. Raza)